Or by the agency to do aerial sea heavy work, the market plunged 70% emergency stop

Zhonghai Heavy Industry plunged 70% in an intraday trading session

After the stock price of Huishan Dairy and China Jinkong fell in a cliff-like decline, similar scenes were again staged in Hong Kong stocks. On July 26, China Shipping Heavy Industry (00651) plunged 70% in intraday trading, and its market value evaporated over HK$1 billion. After that, Zhonghai Heavy Industry announced an emergency suspension. In this regard, industry insiders said that the reasons for the plunge in Hong Kong stocks are various and do not rule out the possibility of internal information disclosure or shorting of institutions. For low stock prices, investors are advised to buy carefully to prevent quilt cover.

Plunged more than 70%

Hong Kong stocks reappeared in a cliff-like plunge. On the morning of July 26, Zhonghai Heavy Industry's intraday trading price rushed, with the biggest drop exceeding 70%.

The trading market showed that China Shipping Heavy Industry opened at a flat price of HK$0.149/share in early trading. The stock price subsequently fell, and the market quickly dipped. The stock price fell by more than 70%. Subsequently, the company announced that it would stop trading at 10:53. Before the suspension, China Shipping Heavy Industry Co., Ltd. closed at 0.045 Hong Kong dollars per share, a decrease of 69.8%. The turnover was approximately HK$69.5 million and the trading volume was 1.143 billion shares. The total market value of China Shipping Heavy Industry fell by about HK$1.4 billion to only HK$614 million. Among them, the lowest price of Zhonghai Heavy Industry was quoted at HK$0.038/share, setting a new low for the company in the past five years. In response to the sudden drop in share price, CSCL re-issued the announcement at 12:29 in the afternoon, saying that “at the request of China Shipping Heavy Industry Group Co., Ltd. (the company), the shares of the company have been on July 26, 2017 ( Wednesday, at 10:53 am, the trading of the Stock Exchange of Hong Kong Limited was suspended pending the announcement of inside information of the Company.

Regarding the reason for the stock price crash, the Beijing Business Daily reporter called the office of the Secretary of the China National Heavy Industry Corporation to conduct an interview. The other staff said that “the company is currently investigating and will announce it in two days”.

In fact, China Shipping Heavy Industry is not the first stock that has fallen in the first half of this year. On March 24 this year, Huishan Dairy suddenly saw a continuous plunge in the market near midday. As of the close of the morning, Huishan Dairy fell as much as 85. %. In addition, on the morning of April 11, the Chinese gold control market experienced a sharp drop, with the largest drop of more than 80%. The lowest price in the session hit a new low since the listing of China Gold Holdings.

For the frequent plunge in Hong Kong stocks, scholar and commentator Bu Naxin said in an interview with Beijing Business Daily that the reasons for the plunge in Hong Kong stocks are various and may be affected by short news. If it is a small-cap stock, it may be manipulated by the dealer. Similarly, in the view of Wang Jianhui, director of the Capital Innovation Institute, the specific reasons for the stock market crash need to be analyzed in many aspects. Macroscopically, this performance of individual stocks is affected by many factors in the Hong Kong market. Specifically, the same as the mainland market, the company's stock price generally depends on the company's fundamentals. If the company's fundamentals are better, the stock price generally does not fluctuate too much. On the other hand, in line with the driving force of funds, regardless of the size of the market and the liquidity, the impact of funds is at least decisive in the short term.

Huang Dadong, vice president of business development department of Haotian Financial Group, told the Beijing Business Daily that the Hong Kong stock market suddenly plunged. This is usually caused by the internal leakage of the company's internal news causing public panic or some malicious short-selling institutions to hollow out through these messages.

After the stock plunged, the impact on the company should not be underestimated. Huang Dadong admits that if the company's share price suddenly plummets, it will have a relatively large negative impact on the company's market capitalization, finance and corporate image.

The stock price fell before the big drop

It is worth mentioning that, looking back at the stock price trend of the company in the recent period, the share price of China Shipping Heavy Industry has not been large in the previous period, but the company's share price has continued to fall since July 21.

Specifically, on July 21, July 24, and July 25, the company's share price fell 2.91%, 7.19%, and 3.87% for three consecutive trading days. In contrast, before July 21st to June 1st, the company's share price did not change significantly. According to statistics from Oriental Wealth, from June 1st to July 20th, the company's share price has fallen by 10.42%, and the cumulative decline of China Shipping Heavy Industry from July 21st to 25th reached 13.37%.

Back in the history announcement of China Shipping Heavy Industry, the company did not release significant bad news. On July 24, CS China announced that it plans to invest in Nanjing Huitong by acquiring or subscribing to 20% of Nanjing Huitong's share capital, and will issue cash, issue new shares or may be with existing shareholders. Other ways of reimbursement of the agreement.

It is reported that Nanjing Huitong is mainly engaged in providing intelligent traffic management and service systems and is a leader in online parking service coverage in Shanghai.

It is worth mentioning that in June of this year, the company issued a number of announcements about the issuance of conversion shares. For example, China Shipping Heavy Industry announced on June 21 that the company issued 53.08 million shares of conversion shares on June 21, 2017, with an issue price of HK$0.1884 per share, a discount of 0.32% to the closing price of HK$0.189 per share on the previous business day. , accounting for 0.39% of the enlarged issued share capital.

For the company to issue conversion shares, well-known economist Song Qinghui said that the general reason for the issue is to enhance the attractiveness of securities to investors, so that listed companies can raise the required funds at a lower cost. However, regarding the listed company's discounted issuance of conversion shares, Huang Dadong told the Beijing Business Daily that this is a public share, which is to issue shares of the company's shares in a five-in-one or ten-in-one manner. “The proportion of stocks of retail investors is getting lower and lower, which leads to the need for retail investors to buy a large amount of stocks to maintain the corresponding value. This will make the retailers more and more deep, and the bosses of listed companies will make more and more money. Not through the main business of the listed company, but through the money circled by this model." Huang Dadong said.

In addition, for investors, Huang Dadong believes that stocks with low stock prices are cautious to buy. “Stocks such as a few cents or a few cents. Such stocks are generally easy to be shorted or long, and are easily speculated. Some investors may hear some gossip to buy, and some large institutions may ship when they ship. Spread some false news to retail investors, so retail investors may lose more or be more vulnerable."

Continuous performance loss for many years

In fact, the performance of China Shipping Heavy Industry is not optimistic, financial data shows that since 2011, the company's performance for many years has been a loss.

It is reported that China Shipping Heavy Industry Co., Ltd. is a company engaged in shipbuilding, trade, financial services, and smart parking and automotive electronics. Jiangxi Jiangzhou United Shipbuilding Co., Ltd. is the largest and most powerful ship R&D and manufacturing enterprise in Jiangxi Province, and an important base for the export of marine products in Jiangxi Province. In recent years, due to industry factors, CSCC has been in a state of positive revenue and net profit loss for many years.

Specifically, from 2013 to 2015, Zhonghai Heavy Industries achieved operating revenues of approximately HK$491 million, HK$105 million and HK$158 million, respectively. In 2014 and 2015, compared with 2013, there was a clear sign of a decline in operating income. Net profit attributable to owners of the company during the same period was approximately HK$-33.7 million, HK$6.33 billion and HK$5.01 billion, respectively. In fact, in order to seek "self-rescue", China Shipping Heavy Industry has also taken many measures. In the 2016 annual report, CSCC said that in the face of the continuing downturn in the global shipbuilding market, in 2015, the company entered the smart parking lot equipment manufacturing and automotive electronics business through mergers and acquisitions, transferring mature shipbuilding manufacturing capabilities to the development of parking equipment. manufacture.

According to the 2016 annual report of China Shipping Heavy Industry, the company's performance is still in a loss. Specifically, as of December 31, 2016, the revenue realized by China Shipping Heavy Industry during the reporting period was approximately HK$417 million, and the net profit attributable to owners of the company for the same period was approximately HK$3.53 billion. Loss per share was HK$0.03. Gross loss was HK$30.48 million, a loss of over 80% compared to 2015. The significant reduction in gross loss was mainly due to the benefits of smart parking and automotive electronics business. According to China Shipping Heavy Industry, in 2016, the company's smart parking and automotive electronics business revenue exceeded the shipbuilding business revenue for the first time, becoming the main source of revenue for CSCC. The company has been seeking the transformation of the smart parking sector. Beijing Business Daily reporter Cui Qibin Gao Ping / Wen Wangfei / watchmaking

Zhonghai Heavy Industry's financial data in recent years

Time operating income net profit

2014 HK$105 million - HK$6.33 billion

2015: HK$158 million - HK$501 million

2016 417 million Hong Kong dollars - 357 million Hong Kong dollars